What does GSM mean?

GSM stands for Graded Surveillance Measure, a framework introduced by SEBI in collaboration with the exchanges. Its primary aim is to enhance market integrity and safeguard the interests of investors. The list of stocks under GSM can be monitored on NSE (WEB) and BSE (WEB) websites. For more details, please refer to NSE FAQ. (PDF)

Here are the four stages of surveillance actions:

Stage 1: The applicable margin rate is 100%, and the price band is 5% or lower as applicable.

Stage 2: Trade for Trade with a price band of 5% or lower as applicable, and buyers need to deposit an Additional Surveillance Deposit (ASD) of 50% of the trade value.

Stage 3: Trade for Trade with a price band of 5% or lower as applicable, and buyers need to deposit ASD (100% of trade value).

Stage 4: Trade for Trade with a price band of 5% or lower as applicable, and buyers need to deposit ASD (100% of trade value) with no upward movement allowed.

Did you know? Buying is restricted for stocks in GSM Stage 2 and above.